A bad remodeling hire costs more than money. It costs months of disruption, broken trust, and often a second remodel by a second contractor to fix what the first one ruined. After 50 years in this trade, Bruce has seen the same seven hiring mistakes over and over. They’re avoidable. Here’s the checklist.

Mistake 1: Not Verifying the License

South Dakota doesn’t require state-level general contractor licensing for residential work, but Rapid City does require contractors to register with the city and carry specific endorsements for plumbing, electrical, and structural work. Pennington County requires permits and inspections for most bath remodels.

Verify before signing:

• Rapid City contractor registration (call Building Services at 605-394-4120)
• Plumbing license through South Dakota Plumbing Commission for any work touching water lines
• Electrical license through South Dakota Electrical Commission for any wiring
• General liability insurance (at least $1M coverage)
• Workers compensation if they have employees

Black Hills Premier Interiors holds all of the above and provides certificates on request.

Mistake 2: Big Up-Front Deposits

South Dakota does not have a statutory cap on contractor deposits, but industry standard is 10-25% as a starting deposit, with subsequent payments tied to milestones (rough-in inspected, drywall hung, fixtures set).

Anything above 35% up front is a red flag. Anything above 50% is almost always a sign one of three things: (1) using your money to finish the previous client’s job, (2) buying material for someone else, (3) preparing to disappear.

Reputable contractors are fine waiting for milestone payments. They run their cash flow off finished work, not unfinished promises.

Mistake 3: Verbal Change Orders

Mid-project changes are normal. The mistake is making them verbally. Without written change orders documented and signed:

• You and the contractor will remember the conversation differently
• Cost impact gets argued at the end of the project, not at the time of the change
• Timeline impact stays hidden until the job runs over
• Original contract terms (warranty, payment schedule, scope) become unclear

Insist on written change orders for every scope addition or modification. Both parties sign before the work proceeds.

Mistake 4: Single-Bid Shopping

One bid tells you nothing about market pricing. Three bids gives you real information about scope completeness, contractor quality, and where the realistic price range sits.

Compare bids on:

• Materials by manufacturer/grade (a “tile allowance” of $1,200 with no brand specified is a warning sign)
• Labor scope (waterproofing? subfloor repair? glass install?)
• Permit handling and inspection
• Cleanup and disposal
• Warranty terms (workmanship vs material)

If two bids are $26,000 and one is $14,000, the cheap bid is missing scope. Ask the lowball bidder specifically what’s not included; they’ll usually tell you.

Mistake 5: Skipping the Site Visit Before the Quote

Quotes given over the phone or from photos are guesses. Real bathroom remodels need eyes on the actual space: subfloor condition, plumbing access from below, electrical panel capacity, ventilation, ceiling height, door clearance, framing layout.

If a contractor will quote your project without coming to see it, they’re either way off or they’re going to add change orders after start. Either way: bad sign.

Mistake 6: Not Checking References

Online reviews are gameable. Direct phone references aren’t. Ask every shortlisted contractor for 3-5 names of clients with similar-scope projects in the last 12-18 months. Call them.

Useful questions:

• Did the project finish on the original timeline? If not, why?
• Did the final cost match the contract, or were there surprises?
• How was the daily cleanup?
• Were there warranty issues after completion, and how were they handled?
• Would you hire them again?

Drive by 2-3 of their finished projects if possible. The detail tells you everything.

Mistake 7: Ignoring Mechanic’s Lien Risk

South Dakota mechanic’s lien law lets unpaid subcontractors and material suppliers file a lien against your property, even if you paid the general contractor in full. If the GC doesn’t pay them, the supplier can come after you.

Protections:

• Conditional lien releases. Require lien releases from the GC and all subs/suppliers before each progress payment.
• Joint checks. For large material purchases, write the check jointly to the GC and the supplier.
• Final lien release. Before final payment, get unconditional lien releases from every party.

Black Hills Premier Interiors provides lien releases as standard practice with every progress payment.

Frequently Asked Questions

Does South Dakota require a state general contractor license?

No state-level GC license is required for residential work. Rapid City does require contractors to register with the city and carry specific endorsements (plumbing, electrical) for trade-specific work. Pennington County requires permits.

What deposit should I pay a contractor?

Industry standard is 10-25% up front. Above 35% is a red flag. Subsequent payments tied to milestones (rough-in passed, drywall hung, fixtures set), not calendar dates.

How do I verify a Rapid City contractor is registered?

Call Rapid City Building Services at 605-394-4120 with the contractor’s business name. They confirm city registration, complaint history, and trade endorsements.

What should be in a remodeling contract?

Scope of work line-item, materials by manufacturer/grade, total price, payment schedule tied to milestones, start and substantial-completion dates, change order process, warranty terms (workmanship and material), and dispute resolution.

How long should a contractor warranty their work?

Industry standard for workmanship: 1 year minimum. Premium contractors offer 2-5 years. Material warranties (the manufacturer’s) typically run 10-25 years and pass through to the homeowner if the install was to manufacturer spec.

What happens if the contractor doesn’t finish?

In SD, you can file a complaint with Rapid City Building Services and pursue civil action. If they’ve filed liens or taken your deposit and disappeared, contact the South Dakota Attorney General’s Consumer Protection Division.

Do you guarantee your work?

5-year workmanship warranty, plus all manufacturer material warranties. Bruce personally answers warranty calls, same number you called for the original quote.

Serving Rapid City and the Black Hills region of South Dakota. Learn more about our services, browse our project gallery, or read about Bruce and the team.